EC changes its tune on tied aid

Special report: the European commission
Special report: Labour's ethical foreign policy

The European commission appeared to shift its ground yesterday by pledging not to stand in the way of an international deal to cut the strings attached to aid donations to the world's poorest countries.

In an interview with The Guardian, Poul Nielson, the commissioner in charge of development policy, said: "If the DAC [development assistance committee of the OECD] moves on the least developed countries the commission will go with it."

After negotiations lasting more than 30 years, the DAC is attempting to reach a deal by May on ending the long-established practice of making aid conditional on the purchase of goods and services from the donor country. The draft agreement excludes certain forms of aid, including food, and is limited to the world's 48 least developed countries but it is seen as a first step towards a more comprehensive agreement.

While in favour of allowing developing countries to bid for contracts in certain regions, the commission had been opposed to allowing industrialised countries that are not members of the EU to compete for its business. However, Mr Nielson's remarks during a visit to the UK suggest the commission has had a change of heart.

Clare Short, the international development secretary, who has pledged to untie all British aid whether or not an international deal is reached in the DAC, said the commission was moving in the right direction but should be much bolder.

She said: "I am disappointed by commissioner Nielson's stand on untying. This concession is still only for untying aid to the least developed countries. We want a comprehensive agreement to maximise the benefits of aid which should be focused on eliminating poverty, not furthering commercial interests."


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EC changes its tune on tied aid

This article was first published on guardian.co.uk at 03.29 GMT on Friday 9 February 2001. It was last updated at 03.29 GMT on Friday 9 February 2001.

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